Proactive Investors - Run By Investors For Investors

Offtake Heads-of-Terms signed by phosphate subsidiary of Galileo Resources

Agreement follows significant pilot plant work carried out at the Glenover project
Offtake Heads-of-Terms signed by phosphate subsidiary of Galileo Resources
Historic workings at Glenover

Glenover Phosphate, the 36%-owned subsidiary of Galileo Resources PLC (LON:GLR), has signed Heads of Agreement for an off-take deal with a major phosphate and fertiliser producer.

Glenover will supply raw phosphate rock in the form of flotation concentrate from its project in Limpopo Province, South Africa.

READ: Galileo Resources steps up activity on zinc and phosphate interests

The deal comes in conjunction with the acceptance by South Africa’s Department of Mineral Resources of Glenover’s application for a mining right. Glenover has now commenced the requisite environmental impact assessment programme.

On successful grant of the Mining Right, Galileo will increase its beneficial interest to 38% in the Project

 The Heads of Agreement are subject to the parties entering into a definitive supply agreement and otherwise terminate on 30 April 2018.

In addition, the buyer still requires further pilot scale work to determine the suitability of the phosphate rock in its process as one of the main conditions precedent, but further capital expenditure for the second phase pilot scale test work will be subject to the parties agreeing on the main commercial terms in the Heads.

The buyer will purchase Glenover phosphate rock (33% P2O5) at international market prices.

READ: Galileo advancing on several fronts with multi-commodity focus

"Galileo and JV partner Ferminore have been in discussions with various interested groups concerning the development of the project,” said Galileo chief Colin Bird.

“One group has already carried out extensive bench scale testwork and on this basis has entered into a preliminary offtake agreement, with pilot scale testing remaining the main hurdle to a binding agreement."


View full GLR profile View Profile

Galileo Resources PLC Timeline

Related Articles

January 22 2018
Tungsten prices are on the rise and construction is proceeding apace at Barruecopardo
Picture of nickel symbol on periodic table
January 17 2018
Prineas flagged the potential development of a high margin low-cost mining operation.
July 28 2017
We are joined exclusively by Wayne Rossiter, CEO, in Proactive Q&A Sessions™.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use